Case based models of the relationship between consumer resistance to innovation and customer churn

Abstract

This paper aims to investigate the relationship between customer resistance to innovation and customer churn based on young Chinese consumers' characteristics. This study uses smart phone apps as the product category. Based on the methodology of fuzzy-set Qualitative Comparative Analysis, this study uses 101 cases. Three major configurational results and core factors are found in this study. Configuration 1 points out the importance of affect response and functioning dimensions; configuration 2 points out the effect of emotional consumers’ attitude toward innovation; configuration 3 suggests that cognitive rigidity plays a critical role against innovation. This study bridges the academic gap between customer resistance to innovation and customer churn and adopts different methodologies to test and prove previous research. Based on the results, this study contributes to the customer churn studies from CRI with a different methodological angle compared with current studies in the consumer behavior domain. Meanwhile, this study provides managerial suggestions for marketing practitioners to reduce CRI and on how to make consumers accept the new products.